- Walmart's third attempt to acquire TikTok since 2020 Microsoft partnership
- White House proposes letting China retain algorithm control through leasing model
- 54% US tariffs on Chinese goods complicate multinational negotiations
Retail giant Walmart has re-entered the TikTok acquisition arena, marking its most aggressive push yet to secure the viral video platform. This renewed interest follows Amazon's surprise bid announcement last week, reigniting corporate fears about losing ground in social commerce. Industry analysts note Walmart could leverage TikTok's 150 million US users to challenge Amazon's livestream shopping dominance through integrated product demonstrations.
The Trump administration's proposed algorithm leasing arrangement represents uncharted territory in tech acquisitions. Under this model, Beijing-based ByteDance would maintain ownership of TikTok's recommendation engine while licensing it to US operators – a structure some legal experts argue violates the Protecting Americans From Foreign Adversary Controlled Applications Act passed in April. National security advisor John Bolton criticized the plan, stating it preserves Chinese access to American user behavioral data.
Mounting trade tensions add complexity to negotiations, with the US implementing 54% tariffs on Chinese electric vehicles and Beijing retaliating with 34% duties on American agricultural exports. President Trump framed the tariffs as leverage during Thursday's press briefing: When China sees those numbers, they'll come to the table fast – maybe even approve our TikTok deal.This hardline stance has divided Republicans, with Senator Marco Rubio calling it economic blackmail that weakens our position.
Several unexpected bidders have emerged in the eleventh-hour auction, including OnlyFans founder Tim Stokely and mobile advertising firm AppLovin. Oracle remains positioned as the infrastructure partner of choice, having successfully migrated TikTok's US data to its cloud platform in 2022. A regional case study from Germany's Lidl demonstrates retail-social media synergy – after acquiring food blog platform Kitchen Stories in 2021, the grocer saw 22% growth in online grocery orders among users under 35.
Three critical industry insights shape this high-stakes deal: First, algorithm control has surpassed user data as the primary national security concern in tech mergers. Second, 83% of retailers now prioritize owned social platforms over third-party advertising according to Gartner's 2024 CMO survey. Third, cross-border acquisitions require 37% longer due diligence periods compared to domestic deals, per McKinsey analysis – a timeline that conflicts with TikTok's November election-season deadline.